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Obamacare Decision Could Impact Economic Growth

Recorded on June 22, 2012

From The Heritage Foundation, I'm Ernest Istook.

Rarely does a court decision have immediate impact on America's economy. But the imminent Supreme Court ruling on Obamacare might.

If the court throws out the entire law—not just the individual mandate—it will remove one of the major tax increases that otherwise hit January 1st.

We still would have tax hikes in January because the so-called Bush tax cuts, and their extensions, will expire. But we would avoid the brand-new taxes that are part of Obamacare. The double-whammy of those combined measures is what's called Taxmageddon, and that threat is holding back job growth right now.

If part of the threat is removed, some businesses might be willing to expand again. Maybe.

It's the uncertainty that is holding companies back from investing in expansion. Congress could relieve this by acting this summer to make sure that nobody's taxes will go up in January.

From The Heritage Foundation, I'm Ernest Istook.